Speaking at the miner’s annual ­general meeting in London on ­Thursday, Mr Du Plessis acknowledged the “badly timed" ­acquisition of ­aluminium producer
Alcan
in July 2007 and reiterated the board’s focus on pursuing greater value and ­sustainable returns for ­shareholders.

“We therefore have to acknowledge the acquisition has had a significant negative impact on shareholder value and, as owners, you have every right to expect that we do better," Mr Du Plessis said.

Rio was forced to take massive writedowns on Alcan following a collapse in aluminium prices.

Mr Du Plessis said Rio expected ­there to be continuing volatility in the short-to-­medium term but as “billions of people move from rural to urban areas" there will be higher demand for the metals and minerals it produces.

“I am confident we are well placed to capitalise on the positive long-term demand for ­commodities and, by doing so, to create sustainable, long-term value for ­shareholders," he said.

His comments came after the Rio board reaffirmed its strategy in ­September 2012 to invest in and operate large, long-term, expandable, low-cost mines and businesses to deliver returns to shareholders.

“However, ongoing volatility in the global economy and major structural shifts in the sector will require improvements in the manner by which our strategy is executed," he said.

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Sam Walsh
, who replaced
Tom Albanese
as Rio’s boss in January, said the company had improved its existing investment committee controls and procedures.

“This will ensure that we thoroughly scrutinise all capital allocation ­decisions, that we invest only in projects that deliver returns well above our cost of capital and so will deliver greater value for shareholders," he said at the London meeting.